All Forum Posts by: Charles Perkins

There are several ways to add value to RE investors.  One is talking to investors at RE meetings, reading what investors say they look for in an agent here on BP.  

An important thing I consider is an agent's knowledge of the communities I'm looking into.  Things like the demographics of the area, crime, ages of property, history of the area, known property disputes, etc all help.  Often agents have been in many of the homes in the area this can be helpful sometimes.

Basically you are looking for how to add value and how are different from other agents.  Later when you have begun investing yourself you may have other ways to help investors.

First you need to understand all the costs of ownership for both properties.  This includes future maintenance that will be required.  I check on real estate taxes, local taxes, insurance cost, etc.

You also want to do your due diligence to verify property conditions, easements, neighborhood, and other details about the properties.  Is the property on septic or sewer?  Some details can be checked on the assessor's website other details may require calling other agencies, a good local RE agent and talking to neighbors.

Ask yourself how long you expect to hold the property.  Is the area appreciating in value, stable or perhaps falling.  If you plan to rent what are the area vacancy rates, how much other housing is currently available in the area.

After consider these things it is easier to make a sound decision based on your investment goals.

Yes, this true.  As you pay down the principal the portion of your payment attributable to interest will decrease.  More and more of your monthly payment begins to pay down principal as time goes by.  The easiest way to see this is with an amortization schedule.

I often had clients that didn't understand what it meant to be ordinary and necessary.  For instance work clothes might be a legitimate business expense of a contractor, but usually it's not. If a company provides a specific uniform that must be worn by all employees on a job, then it probably is a legitimate business expense.

This is my opinion only.  Anytime l get into an investment or look to start a business, I know that I will be investing something.  That something is not always money, but money always helps.

Great previous experience helps a lot. Working for someone can provide the experience you need.  Volunteer work can lead to the similar experience.

Education is a plus that can be brought to the table.  Even at 18 you may have some skills that you have learned like sales, marketing, research, data analysis, and others.  Construction skills, loan skills, financing skills, legal understanding, real estate transaction skills, etc all greatly help.

Personally I wouldn't deal with someone that has no money, lacks experience, or some kind of resources.  Always bring something to the table otherwise your chances of success are very low.

Just my cent and a quarter worth.

I go to the IRS website.  Professional trade journals such as Accountancy, Tax advisor and others.  I also monitor new legislation.

After 6 months it will probably be difficult to change their behavior.  At this point talking to the tenant is your best path unless you want to pursue an eviction.  Some states allow an eviction for repeated violations of a rental agreement.

It is also not a good practice to wait to long to raise rent to market rates.  Large rent increases are much harder and than smaller yearly increases.  

None of the above. This is a great time though to discuss tax issues and possible changes coming with a new president.

In my market we are not allowed to charge above market rent for section 8 and why charge below market on a standard lease.  I have had section 8 and standard leases.  The section 8 are usually far more work in my experience. 50% of the time we have had to evict them at some point.  

Here also evicting a section 8 tenant takes longer than a standard tenant.  This is due to longer notice requirements primarily.

Collecting from the housing authority is great.  The portion due from the tenant is often not so great in my experience.

We have 85% concentrated in real estate primarily due to appreciation.  I'm in the process of developing a property and will decide on an exit strategy when it's done.  This could change my allocation.

We are retired, but I still work as a REI professional.